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The 2TB Time Capsule is essentially an Airport Extreme router with a built-in 2TB hard drive, that could be set-up together with Time machine to do automatic hourly back-ups of your files and system settings, for total 'hands-off' piece of mind.

An Airport Express, even though it could be set up as a router, or a network extender together with say, an Airport Extreme, can also be configured in 'client' mode, where it joins an existing network, and it's primary purpose is to allow audio content from your iTunes library, to be streamed wirelessly, to a stereo set-up elsewhere in your house, in addition to facilitating wireless printing in such remote area, through its USB port.